Estate taxes can put a heavy financial burden on a wealthy Texas resident's beneficiaries after his or her death. For instance, someone who passes away in 2012 may freely leave up to $5.12 million to heirs, but bequests above this limit incur a tax of 35 percent. That rate is set to rise to 55 … [Read more...] about Life insurance can help heirs pay estate tax
Congress may allow IRS to report unpaid taxes to credit bureaus
The Government Accountability Office recently issued a report in which it detailed the benefits and drawbacks of allowing the Internal Revenue Service to tell credit bureaus about consumers who fail to pay their taxes. An existing law aimed at protecting taxpayer privacy keeps this ability outside … [Read more...] about Congress may allow IRS to report unpaid taxes to credit bureaus
Knowing your rights with the IRS
Many Texas residents who cannot or fail to pay their taxes become worried that the Internal Revenue Service will levy their bank accounts or immediately start taking similar aggressive action in order to recover delinquent payments. However, it is important to remember the IRS must follow a … [Read more...] about Knowing your rights with the IRS
Ranchers get IRS extension on livestock sales after drought
The Internal Revenue Service has announced that individuals who were forced to sell off livestock due to the ongoing drought still affecting Texas and many other states can avoid paying taxes on gains they made from such sales by obtaining new livestock. Farmers and ranchers who qualify for this … [Read more...] about Ranchers get IRS extension on livestock sales after drought
Taxes that may be deductible
Many Texas residents are targeted by IRS audits every year. Some may even be finding themselves at the center of audit fraud cases and facing severe penalties. In order to avoid such a downfall, it is important to know precisely what may be deducted from your federal income taxes. In some cases, you … [Read more...] about Taxes that may be deductible
Small businesses to face more thorough IRS audits
In the most recent measure of the Internal Revenue Service's power over small businesses, the agency has announced eight new audit areas it will emphasize in 2013. The IRS claims that underreporting on taxes by small businesses accounts for about 84 percent of the U.S.'s $450 billion tax gap. Small … [Read more...] about Small businesses to face more thorough IRS audits